Terms & Conditions of Sales

1.1 In these terms and conditions the following words have the meanings given:-

“Business Day”

means any day other than a Saturday, Sunday or a bank or public holiday in England, Wales, Scotland or Northern Ireland;

“Contract”

means a contract for the purchase by the Customer of Products or Services from SCC incorporating these terms and conditions and arising from the acceptance by SCC of an Order;

“Customer”

means the person, firm or company ordering Products or Services;

“Default”

means any breach by SCC of its obligations under a Contract, any default, act, omission, negligence or statement by SCC, its employees, agents or subcontractors
arising out of or in connection with a Contract and in respect of which SCC may be legally liable to the Customer;

“Delivery”

means when possession or control of the Products is offered or transferred to the Customer or its agent or upon delivery by SCC or its agent to an address given by the Customer;

“Group”

means in relation to any that company and every other company which for the time being is a subsidiary or holding company (as defined in the Companies Act 1985) of that company or subsidiary of such holding company;

“Hardware”

means any computer hardware, networking equipment, or peripheral products supplied by SCC to the Customer but not including any consumables;

“Intellectual Property Rights”

means copyright, patent, trademark, service marks, registered designs, sui generis rights, know-how,
confidential information, trade or business names or other similar rights together with applications for any of the foregoing;

“Licence Agreement”

means any licence agreement relating to use of the Software;

“Order”

means any written order for Products, or Products and Services, received by SCC from the Customer;

“Product”

means the Hardware and/or Software ordered by the Customer from SCC from time to time;

“SCC”

means Specialist Computer Centres PLC or any such other company as Specialist Computer Centres PLC may appoint as sub-contractor to provide the Services to the Customer;

“Services”

means any configuration or installation services provided by SCC in conjunction with the supply of Products;

“Software”

means any computer software supplied by SCC, whether embodied in ROM, RAM, firmware or on disk, tape or other media.

1.2 All other words and expressions are to be given their normal English meaning taken in
the context of the Contract. Any dispute as to the meaning of a word is to be settled by
reference to the Oxford English Dictionary.

1.3 Any reference to a clause shall mean a clause of these terms and conditions unless
otherwise stated.

1.4 The use of headings in these terms and conditions shall be for convenience only and
shall not affect the interpretation of these terms and conditions.

1.5 Reference to any statute or statutory provision or any other regulation includes any
provision which subsequently supersedes it or re-enacts it (whether with or without
modification).

1.6 In the event of any inconsistency between these terms and conditions and the terms
contained in the Customer Agreement the Customer Agreement shall prevail unless
stated herein.

2. Contract Formation

2.1 All Orders submitted by the Customer to SCC and accepted by SCC shall be subject to
these following terms and conditions which shall form part of and govern any Contract.

2.2 Acceptance by the Customer of any estimate or quotation for Products and/or Services
issued by SCC shall be deemed to be acceptance of these terms and conditions.

2.3 Any terms and conditions appearing in any Order or other document whatsoever issued
by the Customer shall be void and of no effect and these terms and conditions shall
override any previous agreements relating to the provision of Products or Services
between the parties.

2.4 No waiver of or amendment to these terms and conditions shall be effective unless made
in writing and signed by SCC.

2.5 The Contract contains the entire agreement of the parties in relation to the supply of
Products or Services by SCC to the Customer and the Customer irrevocably waives any
right it might have to claim for damages and/or to rescind a Contract because of any
misrepresentation by SCC (unless such misrepresentation was made fraudulently) or any
warranty not contained in the Contract.

3. Price

3.1 All prices for Products or Services stated in any quote, estimate or acceptance of Order
are those current at the time of the Customer’s enquiry. The price payable by the
Customer for Products or Services will be the price in force at the time of delivery of the
Products or supply of Services to the Customer and SCC reserves the right to pass on to
the Customer any increase in the price of Products or Services occurring after the time of
any quotation, estimate or acceptance of an Order by SCC.

3.2 All prices for the Products are exclusive of Value Added Tax or other applicable sales tax
whether in substitution or in addition which shall be paid by the Customer at the rate from
time to time in force.

3.3 Unless otherwise agreed in writing by SCC, all prices for the Products are exclusive of
SCC’s charges for delivery, handling or Services which will be added to SCC’s invoice for
the Products.

4. Payment

4.1 SCC may at its discretion offer credit terms to the Customer subject to the status of the
Customer and completion by the Customer of a credit application form supplied by SCC.
Such credit terms shall be governed by separate terms agreed between SCC and the
Customer.

4.2 Subject to any credit terms agreed, the Customer shall pay for Products or Services no
later than 30 days following the date of SCC’s invoice.

4.3 If Products are delivered in instalments SCC reserves the right to invoice each instalment
as and when Delivery is made to the Customer in which case payment shall be due in
accordance with clause 4.2 above notwithstanding non-delivery of other instalments or
fulfilment of the entire order.

4.4 If any payments are overdue the Customer will be placed on credit hold and no further
Products or Services will be delivered or made available to the Customer until all
payments due to SCC under the Contract have been paid. Repeated failure by the
Customer to comply with SCC’s payment terms will result in permanent withdrawal of
credit facilities.

4.5 If payment is not received by the relevant due date SCC may charge the Customer
interest on any overdue amount (on a daily basis) from the due date of payment to the
date of actual payment (both dates inclusive) at the rate of four (4) per cent above the
HSBC Bank plc Base Rate for the time being in force.

4.6 All payments made by the Customer to SCC shall be in sterling in immediately available
funds free and clear of any right of set off or counter claim or any withholding or
deduction whatsoever.

5. Title

5.1 Title to and property in any Products will remain vested in SCC until payment in full of the
purchase price (together with any interest and VAT thereon) and in cleared funds has
been received by SCC in respect of:-
(i) those Products; and
(ii) all other amounts payable by the Customer to SCC (whether or not due for
payment).

5.2 Title to and property in Products will remain with SCC notwithstanding that the relevant
Products have been Delivered and/or incorporated in or affixed to other products
including, for the avoidance of doubt, the storage of or incorporation of any Software in
ROM, RAM or any other hardware, software or firmware or other media whatsoever.

5.3 Until such time as title to and property in any Products passes to the Customer, the
Customer will store those Products on its premises in conditions that adequately protect
them and separately from the Customer’s own goods or those of any other person and
clearly marked as SCC’s property, and the Customer shall redeliver the Products to SCC
on demand.

5.4 If the Customer fails to redeliver any Product on demand in accordance with clause 5.3,
SCC shall be entitled with or without notice, without incurring any liability to the
Customer, to enter the Customer’s premises for the purpose of taking possession of the
Product, and to take such steps as are necessary to remove the Product including the
right to dismantle any product into which the Product has been incorporated and the right
to detach the Product from any other goods to which the Product has been attached.

5.5 The Customer shall fully indemnify SCC in respect of all SCC’s costs (including legal
costs) in connection with enforcing the provisions of clause 5.4.

5.6 Until such time as, in accordance with the above provisions, either the Customer shall
have ceased to have the right to retain possession of any Product or shall have acquired
title to and property in the Product the Customer is hereby authorised by SCC to sell the
same and to pass good title to its customers if they purchase the Product in good faith
without notice of SCC’s rights. This right shall automatically cease on the occurrence of
any of the events set out in clause 17 and/or if any sum owed to SCC is not paid when
due.

5.7 Where a Product is sold or otherwise disposed of to a third party before title to and
property in it has passed to the Customer, the sale will constitute a sale by the Customer
of SCC’s property, and the Customer shall hold on trust for SCC such sum as represents,
or is equivalent to, the price at which the Product concerned was invoiced by SCC to the
Customer. Such proceeds shall be paid by the Customer into a separate bank account
opened for the purpose and approved by SCC and shall ensure that in no circumstances
are the proceeds mingled with other money or paid into any overdrawn bank account that
are at all times identified as SCC’s money.

5.8 If the Customer has not received the proceeds of any such sale or disposition, it will, if
required by SCC, assign to SCC forthwith all rights against the person, firm or company
by whom the proceeds are owed.

6. Performance of the Contract

6.1 Any dates quoted or mentioned by SCC for Delivery of the Products or the provision of
the Services whether verbally or otherwise are estimates only and whilst SCC will use all
reasonable endeavours to meet such dates it cannot guarantee to do so. Time will not
be of the essence in the Delivery of the Products or the performance of the Services.
SCC shall have no liability to the Customer if it fails to meet any requested, quoted,
estimated or agreed date for Delivery of Products or the provision of the Services. SCC
will be entitled to a reasonable extension of time in which to effect Delivery of the
Products or perform the Services.

6.2 SCC shall be entitled to make a partial Delivery of the Products or Delivery by
instalments.

6.3 Notwithstanding clause 5 above, the risk in any Product shall pass to the Customer on
Delivery.

6.4 All illustrations or specifications contained in any catalogues or publicity material
produced by SCC are approximate only and are only intended to convey a general idea
of the Products or Services and any typographical, clerical or other error or omission in
any literature/document or information issued by SCC will be correctable without notice
or any liability to the Customer.

7. Inspection

7.1 Where Products are delivered to the Customer, the Customer must inspect the Products
immediately upon their arrival to check whether:-
(a) the Products have been damaged in transit; and
(b) the Products are those, and in the quantity, specified in the Order.

7.2 Any discrepancy between the Products delivered and those specified in the Order and/or
any damage to the Products in transit must be notified to SCC in writing within two
Business Days of receipt by the Customer of the Products.

7.3 In the case of non-delivery of Products, the Customer must notify SCC in writing within
two Business Days of receipt by the Customer of SCC’s delivery note or invoice
(whichever is earlier).

7.4 No claim for damage in transit, non-compliance with the Order or non-delivery will be
considered by SCC unless the Customer complies with the provisions of this clause.

7.5 If the Customer requests SCC to provide duplicate copies of any signed delivery notes, a
charge of £12.00 (Twelve Pounds) per copy shall be made by SCC and invoiced
accordingly.

8. Acceptance

8.1 The Customer will be deemed to have accepted Products or Services as being in
accordance with the Contract unless the Customer notifies SCC in writing of any defect in
materials or workmanship or failure to comply with specifications or other data supplied
by you or any other failure of the Products or Services which would be apparent on
reasonable inspection of the Products within five Business Days from the date of delivery
of the Products or completion of the Services (whichever is later).

8.2 In the event of a valid claim by the Customer under Clause 8.1, SCC shall upon return of
the defective Product at its option replace the relevant Product or arrange for repair of the
Product within a reasonable time at no cost to the Customer but otherwise shall have no
liability for such non-compliance.

9. Customer Obligations

9.1 The Customer shall be entirely responsible for:-
(a) providing a suitable environment for the installation of the Products; and
(b) unless otherwise agreed by SCC, the installation of the Products.
(c) using the Products in accordance with the manufacture’s instructions and
recommendations (including those contained in any Licence Agreement).
(d) carrying out cleaning operations as recommended by the Product manufacturer or
SCC.

9.2 The Customer shall provide such access to its premises, personnel and facilities as SCC
shall reasonably require in order to provide the Services.

9.3 The Customer will provide SCC with such information as it may reasonably need
concerning the Customer’s operations and answers to queries, decisions and approvals
which may be reasonably necessary for SCC to undertake any Services. The Customer
is responsible for ensuring that such information and answers are accurate and
complete. SCC will, to the extent reasonably practicable, give the Customer reasonable
prior notice of any information or answers it requires in accordance with this clause 9 and
will notify the Customer promptly in writing if it considers the Customer to have failed to
provide information or answers in accordance with this clause 9 or if it has reason to
suspect that any information is inaccurate or incomplete.

9.4 In the event the Services includes installation the Customer will provide, free of charge,
the following facilities to authorised personnel of SCC and its Sub-Contractors throughout
the Customer’s normal business hours and at such other times as the Customer
authorises after reasonable prior notice from SCC (such authorisation not to be
reasonably withheld or delayed):

9.4.1 access to and use of the Customer equipment and unloading equipment, access
to the Customer’s employees, the products and the site;

9.4.2 all electric power, lighting, heating and air conditioning reasonably needed by the
SCC to perform the Services

9.4.3 office space suitable for this purpose and the provision of normal office services
including first aid, photocopying, telephone and facsimile facilities (but excluding
any secretarial support, typing and photocopying facilities needs to produce any
documentation for which the SCC is responsible), and such facilities may be
used only for the purposes of providing the Services

9.4.4 competent operators for the Products and any relevant Customer equipment.

9.4.5 The Customer shall also be responsible for ensuring that the Customer’s existing
hardware and software is properly installed and is sufficient and suitable for its
purpose and that any adjustments which may be required are carried out
expeditiously. SCC will be responsible for connecting the Products to Customer’s
existing hardware with the co-operation of the Customer.

10. Cancellation

10.1 Except as provided herein, the Customer shall not be entitled to return any Product or
cancel any Orders which SCC has accepted without SCC’s prior written agreement and
any such cancellation or return shall be subject to:-
(a) the Customer indemnifying SCC in full for any costs, charge, expenses,
damages or loss (including loss of profit) incurred or suffered by SCC in respect
of such return or cancellation; and
(b) the Product returned being accompanied by a reference to a returns not number
issued by SCC and being in stock condition, complete with all packing and
appropriately boxed.

10.2 The Customer shall be responsible for the cost of carriage and insurance in respect of all
Products returned to SCC, which Products shall also be at the Customer’s risk until
actual receipt by SCC.

11. Product Modifications

11.1 SCC may modify the specification of any Product to be supplied by SCC and/or
substitute substantially conforming components provided the modifications and/or
substitutions do not adversely affect the performance of the Product. SCC will wherever
practicable advise the Customer of all such modifications or substitutions in advance of
delivering the Product to the Customer.

12. Warranties

12.1 SCC, to the extent that it is permitted to do so, hereby assigns the benefit of any
guarantee or warranty covering any defects in Products received by SCC under an
agreement with the manufacturer or supplier of the relevant Product.

12.2 The warranty service (if any) will be that provided by the manufacturer or supplier (as the
case may be) and any validation procedures relating to that warranty service are the
responsibility of the Customer.

12.3 SCC may in its discretion offer support or maintenance services with respect to Products
and such services shall be governed by separate terms agree between SCC and the
Customer.

12.4 The warranty of the manufacturer or supplier is in lieu of all other terms or conditions
whether express or implied concerning the quality or fitness for purpose of Products and
all such other terms and conditions are hereby excluded.

12.5 SCC warrants that the Services will be carried out with reasonable care and skill and by
suitably trained and qualified persons.

13. Year 2000

13.1 SCC undertake that it will use all reasonable endeavours to obtain from the original
manufacturer of the Products a warranty that the Products are Year 2000 Compliant, and
to the extent that it is able, SCC will transfer to the Customer the benefits of any such
warranty. For the purposes of this clause, “Year 2000 Compliant” means that neither the
performance nor the functionality of the Products shall in any way be affected by any
date whether before, at or after 1st January 2000, that the Products will be capable of
correctly processing all dates and that Year 2000 will be recognised as a leap year.

13.2 SCC will in no circumstances be liable to the Customer for any losses, claims or
damages whatever nature that the Customer may suffer as a result of the Products not
being Year 2000 Compliant.

13.3 All other express or implied warranties or conditions relating to quality or fitness for
purpose (whether implied by statute or otherwise) are hereby excluded in so far as they
might apply in the event of the Products not being Year 2000 Compliant.

14. Liability

14.1 SCC will accept liability without limitation for death or personal injury caused by the
negligence of SCC (and for any fraudulent misrepresentation).

14.2 The maximum liability of SCC whether in contract, tort or otherwise for any direct physical
damage to tangible property of the Customer caused by a Default by SCC shall be
limited to the lesser of £500,000 per incident or series of incidents or an amount equal to
the sums paid by the Customer under the Contract during the preceding 12 months.

14.3 The maximum liability of SCC to the Customer whether in contract, tort or otherwise for a
direct loss or damage (other than to tangible property) suffered by the Customer as a
result of any Default of SCC shall be limited to the lesser of £100,000 or an amount equal
to the sums paid by the Customer under the Contract during the preceding 12 months.

14.4 SCC shall not be liable to the Customer whether in contract, tort or otherwise and even if
foreseeable by or on the contemplation of SCC for:-
(a) any loss of profits, business, revenue, goodwill, data or anticipated savings,
whether sustained by the Customer or any other person; or
(b) any special, indirect, or consequential loss whether sustained by the Customer or
any other person.

14.5 The Customer acknowledges that the level of Charges has been calculated on the basis that
SCC’s liability will be limited in accordance with this clause. The Customer may by written
notice request SCC to agree a higher limit of liability provided insurance cover can be
obtained therefor and the Customer will pay any additional premiums incurred by SCC as a
result.

15. Intellectual Property Rights

15.1 All Intellectual Property Rights in or in relation to the Products (including any manuals
and operating documentation relating thereto) or in any materials (including Software)
created by SCC during the course of providing the Services shall vest in SCC or its
suppliers as the case may be and the Customer shall have no title to or interest in any
such Intellectual Property Rights except to the extent specifically agreed by SCC.

15.2 The Customer shall notify SCC immediately if it becomes aware of any illegal or
unauthorised use of any of the Products or any of the Intellectual Property Rights in the
Products and will assist SCC and/or its suppliers in taking steps necessary to defend the
owners’ rights.

15.3 The Customer undertakes to execute and comply with the terms of any Licence
Agreement relating to the use of any Software.

15.4 Where no Licence Agreement is used, the Customer is hereby granted a non-assignable,
non-exclusive Licence to use any Software together with documentation accompanying
such Software subject to payment by the Customer of the stipulated Licence fee.

15.5 Unless specifically authorised under a Licence Agreement, the Customer undertakes that
it shall not (and that it shall not employ nor permit any third party) attempt to copy, adapt,
amend, disassemble, de-compile or reverse engineer Software or any part thereof except
to the extent allowed by English law.

15.6 The Customer further acknowledges that Software and all accompanying operating
documentation and manuals are confidential and subject to the terms of clause 16.

16. Confidentiality

16.1 Each party shall treat as confidential all information obtained from the other which is
specifically designated as confidential or propriety and shall not divulge such information
to any person (except to such party’s own employees and the only to those employees
who need to know the same) without the other party’s prior written consent.

16.2 This clause shall not extend to any information which was rightfully in the possession of a
party prior to the commencement of the negotiations leading to a Contract, which is
already public knowledge or becomes so at a future date (otherwise than as a result of a
breach of the clause) or which is trivial or obvious.

16.3 Each party shall ensure that its employees are aware of and comply with the provisions
of this clause.

17. Termination

17.1 Without prejudice to any other rights or remedies SCC might have against the Customer
SCC may terminate a Contract or suspend the performance of its obligations under a
Contract forthwith by notice in writing to the Customer if:-
(a) the Customer defaults in making payment for any of the Products or Services
supplied by SCC within seven days of its due date;
(b) any steps are taken or negotiations commenced by the Customer or any of its
creditors with a view to a kind of voluntary arrangement, compromise, or other
arrangement between the Customer and its creditors; or
(c) the Customer is deemed unable to pay its debts within the meaning of section
123 of the Insolvency Act 1986 be unable to pay his debts or any steps are taken
to wind up the Customer, or an administrator, administrative receiver or receiver
is appointed over the Customer’s business or any part of its assets.

17.2 Upon termination of a Contract under clause 17.1, SCC have the right, without prejudice
to any other right or remedy available, to enter the Customer’s premises and repossess
the Product or any of them and shall have the right to dismantle any machinery, product,
item or equipment into which the Product or any of them have been incorporated and the
Customer shall be responsible for all SCC’s costs and expenses in connection with so
doing.

17.3 Upon termination of a Contract under clause 17.1, the Licence granted to the Customer
under clause 15.4 shall terminate forthwith and SCC shall at its options have the right
without notice to enter on the Customer’s premises to remove any Software and all
copies of the Software, or to request the Customer to return all copies of the Software, or
to insist that the Customer destroys all copies of Software and certifies in writing that they
have been destroyed.

17.4 Those clauses capable of surviving termination shall do so.

18. Variations

18.1 SCC reserves the right to modify these terms and conditions upon notice in writing to the
Customer. Any such modification will apply on the effective date specified in the said
notice to all Orders which are accepted by SCC on or after the date of notice. The
Customer shall have thirty days from the date of notice within which to cancel any Order
sent to SCC prior to the date of notice and not accepted by SCC at that date.

19. Assignment

19.1 The Customer shall not assign or otherwise transfer any of its rights or obligations under
a Contract whether in whole or in part without the prior written consent of SCC.

21. Personnel

21.1 The Customer acknowledges that SCC has incurred significant costs in recruitment and
training its employees to enable them to provide the Services. Accordingly the Customer
agrees that it will not, and it will ensure that no other company within its Group will not,
solicit or approach in any way, any of SCC’s employees who are involved in the provision
of the Services with a view to offering the employment or to solicit services from them on
their own account (whether for the Customer or another party) during the period of the
Contract and for a period of six (6) months after the termination or expiration of the
Contract.

21.2 The Customer acknowledges that damages will not be an adequate remedy for SCC if
the Customer breaches clause 21.1 and that SCC will be entitled to seek injunctive relief
and any other equitable remedies with respect to such breach.

21.3 If any employee of SCC leaves the employment of the SCC as a result of a breach by the
customer of clause 17.1 and commences employment with, or provided services to, the
Customer or other member of the Customer’s Group it shall pay SCC 50% of the higher
of:-
(a) the annual salary (including any benefits-in-kind, bonus payments, commissions
and other emoluments) of the employee at the date that they ceased to be an
employee of SCC; and
(b) the annual salary of the employee at the time they commence employment by
the Customer or other member of the Customer’s Group
and the Customer acknowledges that any such payment is by way of liquidated damages
and is reasonable and genuine pre-estimate of SCC’s losses.

22. Invalidity

22.1 If any provisions, or portions thereof, of a Contract are held to be invalid and
unenforceable under any applicable statute or rule of law, they are to that extent to be
deemed omitted and the validity and/or enforceability of the remaining provisions of the
Contract shall not be impaired or affected by that omission.

23. Force Majeure

23.1 Neither party shall be liable for any delay of failure in performing any of its obligations
under a Contract (except payment by the Customer of any sums due under a Contract) if
such delay or failure is caused by circumstances beyond that party’s reasonable control.

24. Notices

24.1 All notices are required to be given hereunder shall be in writing and shall be sent to the
registered address of the party in question.

25. Export Control

25.1 The Customer acknowledges that certain Products may be subject to export controls
imposed by United Kingdom or other Governments and undertakes to apply for and
obtain any necessary licenses or other consents that may be necessary to export or take
any product (or any part thereof) out of the United Kingdom.

26. General

26.1 The parties to this Agreement do not intend that any of its terms will be enforceable by
virtue of the Contracts (Rights of Third Parties) Act 1999 by any person not a party to it.

26.2 Neither party shall be entitled to recover from the other under provisions of this
Agreement more than once to the extent and in respect of the same liability of the other
party or its loss.

26.3 Each of the parties hereto shall use all reasonable efforts to mitigate loss, damages,
costs or expenses that it may suffer or incur in respect of which it desires to make
recovery in whole or in part from the other party by way of indemnity or otherwise.

27. Law

27.1 All Contracts shall be governed by, and constructed in accordance with, English law and
the parties submit to the exclusive jurisdiction of the English courts.